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Protect Your Assets

Look for a great investing opportunity if option prices dip this summer.

AMONG THE PREVIEWS MAY TYPICALLY BRINGS -- OF blockbuster summer movies, torrid beach reads and such -- is a glimpse of what happens when stock prices fall and investor anxiety rises. Earlier this month, as the Standard & Poor's 500 stock index retreated 5% from a five-year high, traders rushed to buy "downside protection" in the option market, and prices on index options quickly jumped from historic lows to yearly highs.

Increased premiums make it trickier for investors still looking to hedge their...